software-company-issues-first-indian-cb-for-2008

Software company issues first Indian CB for 2008

The $125 million deal for Geodesic Information Systems is offered "club-style" to a small number of investors as a way of overcoming aggressive pricing.
January 13, 2008
Indian software provider Geodesic Information Systems became the first Indian company to sell convertible bonds this year when it completed a $125 million issue late last Thursday. The money will be mainly used for overseas acquisitions and investments in joint ventures.

The company has a history of acquisitions since its incorporation in 1999 with three deals completed in 2005 alone.

The pricing was aggressive with a 35% conversion premium and a reset that kicks in later than usual, and given that there was also no borrow available, sole bookrunner Citi chose to offer the deal on fixed terms to a small group of investors only. This focus on the top Indian CB players enabled the...
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